The current TFM (Total Facilities Management) contracts with Amey and Skanska expire in October 2021. Prior to March the Council was at the initial market testing stages of finalising the scope and approach for the procurement of new facilities management services when the existing contracts came to an end. To meet this timetable the competition was due to start in June/July, COVID-19 has had a significant impact on the wider market and whilst there remains a strong interest from the market, in order to ensure that the Council has the strongest position, it is prudent to delay the start of the re-procurement to allow the market position to stabilise.
Reason for the decision
The decision is needed to ensure that KCC properties continue to receive Facilities Management Services, including for example, maintenance, cleaning, security and statutory compliance. The cost of the extension will exceed £1million and is outside of the original delegated authority envisaged under the original contracts.
Proposed decision –Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services agrees to a conditional extension for the current Total Facilities Management Service Contracts for East, Mid and West to mitigate the service gap as a result of the COVID-19 delay to the re-procurement of Facilities Management contract – finalisation of terms and authority to enter into relevant contracts and other legal agreements to be delegated to the Director of Infrastructure.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: For Determination
Division affected: (All Division);
Notice of proposed decision first published: 19/05/2020
Anticipated restriction: Part exempt - View reasons
Decision due: Not before 17th Jun 2020 by Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Reason: In order that the proposed decision can be published for a minimum of 28 days, in accordance with statutory requirements
Lead member: Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Lead director: Rebecca Spore
Department: Strategic & Corporate Services
Contact: Karen Ripley, Head of Property Strategy and Commissioning Tel: 03000 413457 Email: firstname.lastname@example.org.
No requirement for public consultation.
Financial implications: The financial implication is approximately £20 million per annum which split between revenue and capital and are provided for within the current infrastructure budgets. The overall cost depends on the length of the extension which will not be known until a later date but will be adjusted in line with the contract indexation provisions.
Legal implications: KCC will enter into a Conditional Agreement with the TFM providers by way of a Contract Change Notice. This agreement is outside of the current delegated authority envisaged under the original decision No 12/01838.
Equalities implications: No EqIA impacts are envisaged as there is no change from the current contract, an EqIA assessment has been completed.